Posted

To Our Loyal Readers:

It is now officially Fall and the leaves are changing; however, my CUBS are in the playoffs as a Wild Card team. In the playoffs as in business, strategy is the key to success. I would like to share with you an “old” new tool that many Fortune 500 firms have rediscovered. Developed during World War II, CARVER (then one letter shorter and known as CARVE) was originally used by analysts to determine where bomber pilots could most effectively drop their munitions on enemy targets. It can be both offensive and defensive, meaning it can be used for identifying your competitors’ weaknesses and for internal auditing. The article about CARVER I read was in the recent edition of The Harvard Business Review. Here is what they say about the tool: Since it draws on both qualitative and quantitative data, CARVER can be applied in almost any scenario that is analyzed and discussed in an organized, logical way. It can be highly useful if you need to, for example, defend a budget request or a strategic plan to company leadership. Because it helps you articulate an efficient story using numeric values, CARVER can be used to clarify mission objectives — whether on the battlefield or in the boardroom. You might say CARVER is a SWOT analysis on steroids. Here are the basics: CARVER is an acronym that stands for:

* Criticality: how essential an asset or critical system is to your company

* Accessibility: how hard it would be for an adversary to access or attack the asset

* Recoverability: how quickly you could recover if something happened to the asset

* Vulnerability: how well (or not) the asset could withstand an adversary’s attack

* Effect: how much of an impact there would be across your business if something happened to the asset

* Recognizability: how likely it is that an adversary would recognize the asset as a valuable target

To use CARVER — whether you’re assessing a system, a business goal, a new product introduction or something else — you assign scores from 1 to 5 (with 5 being “most essential,” “most likely,” and so on) for each of the six criteria above. The sum of the six scores is the total score for whatever you’re assessing. Once you’ve calculated the total scores for a few things, you can compare them. For example, you could use CARVER to compare two business opportunities; whichever has the higher score is probably the better option to pursue. Give it a try and let me know what you think. Use it to see if you should read the latest edition of American Recruiters Global Foodservice News. My score is a 30 so you know you must read it. Later

Craig Wilson

President American Recruiters

____________________________________________________________________________________________________________________________________________

Recognizing the Impact of Latinos on the Industry

Hispanic Heritage Month, which runs through Oct. 15, is honoring the achievements of the Latino community, and the impact its culture, and legacy have had on America. During this month-long recognition, the National Restaurant Association is reflecting on how Latinos have changed the way we cook, our culture and even how the restaurant industry does business. Dawn Sweeney, president and CEO of the National Restaurant Association, and Fernand Fernandez, interim president and CEO of the U. S. Hispanic Chamber of Commerce, recently penned an opinion article on how the Latino community has influenced the foodservice business. Here are some highlights: * Each year, Hispanic businesses contribute a staggering $700 billion to the national economy. According to the State of the Latino Entrepreneurship report, the Hispanic population is starting businesses at three times the rate of the general population. What does that mean? Essentially, it’s a large economic catalyst resulting in more jobs and money going back into local economies around the country.* There’s been significant growth in the number of restaurants owned and operatedly by Hispanic entrepreneurs. The restaurant industry, the second largest private-sector employer in the country, employs more than 15.1 million Americans, of which 25 percent are Hispanic. * The National Restaurant Association and USHCC are committed to providing career-enhancing programs that create a diverse and inclusive workplace, at all levels and growth opportunities within the restaurant and hospitality industry. “Through our Educational Foundation’s training programs, such as ProStart, which provides culinary and management education to more than 140,000 high-school students, Restaurant Ready, which assists at-risk youth, and the Hospitality Sector Registered Apprenticeship program, created in partnership with the American Hotel & Lodging Association and Department of Labor, we can continue to support and empower this hard-working group,” Sweeney said. “Education and workforce development are two values at the core of both our organizations’ missions.” The Association’s apprenticeship program, in particular, offers its participants on-the-job, paid training and standardized instruction. This, Sweeney said, would increase the skill sets of those individuals who are pursuing management-level careers. Sweeney and Fernandez agree that educational and apprenticeship programs are only part of how their organizations can help nurture and grow the next generation of America’s workforce. “We will continue to empower their ambitions because they continue to drive social and economic change across our nation,” they wrote. Source: The National Restaurant Association.

The name is Dunkin’, just Dunkin’

If customers aren’t on a first name basis with Dunkin’ Donuts by now, the Canton, Mass-company hopes they will be soon. “It’s time we take our relationship with our consumers to the next level,” said the company’s chief marketing officer Tony Weisman on a call discussing the plan to formally rebrand as Dunkin’. Dunkin’, which has been promoting its abbreviated name over the past year, unveiled its new branding at their global franchisee convention. The change will officially take place in January 2019, according to a news release by the company. As David Hoffmann, Dunkin’ Brands CEO noted in the call, the company laid the groundwork for this change over a decade ago with its “America Runs on Dunkin’ campaign. “The simplicity of our new brand creates energy,” said Hoffmann. The new logo will maintain the same bright orange color and familiar font. The change will be reflected on packaging, advertising, websites and social media. The new Dunkin’ logo will eventually make its way to exterior and interior signage of remodeled stores. And the new look will be part of the 1,000 net new openings the company plans in the next three years, according to Hoffmann. There is no immediate cost to franchisees, he added. The brand tested its new logo, including on its next-generation its design concept store, over the past year. The new branding was developed with the creative and branding agencies Jones Knowles Ritchie (JKR), BBDO New York and Arc Worldwide. The logo represents the “breadth and depth of the company” and Dunkin’s focus on beverages and snacks, said Hoffmann. Sixty percent of the company’s sales come from beverages. But donut fans, fear not. According to the company, “Although the word ‘donuts’ will no longer appear in the logo or branding, donuts will remain a significant focus for the brand.” – Source: NRN.

Chipotle Gets ‘Real’ in New Ads Focused on Fresh Ingredients

Chipotle Mexican Grill Inc. has been relatively quiet lately on the marketing front as it deals with the fallout of a food-safety crisis. Now, it’s turning the page. The fast-casual restaurant chain is launching its biggest ad campaign ever in terms of spending within a quarter, as it looks to rehabilitate its image and turn it into a lifestyle brand like TOMS Shoes or Apple, said Chief Marketing Officer Chris Brandt, who joined the chain in April as part of a leadership overhaul.

A new ad campaign and tagline focuses on Chipotle’s commitment to non-processed ingredients. The ads feature close-ups of raw ingredients, like onion and avocado, with the new tagline “Chipotle, for Real,” emphasizing that the food is “real” versus processed. “In our kitchens, you won’t find things like heat lamps, freezers or microwaves, ‘cause our kitchen’s for, you know, cooking,” says the narrator in one ad. A print ad showing all Chipotle ingredients makes a broader statement about the world. “The only ingredient that’s hard to pronounce at Chipotle is chipotle,” it reads in bold type. In finer print, the ad reads, “Real is a way of acting in the world. And when so much of the world feels artificial, it’s nice to get back to real.” “‘For Real’ is new but reflects principals the company was founded on,” said Mr. Brandt. “Being relatively silent for the last few years, other people kind of usurped our position. We didn’t talk about what made us great.”

Chipotle’s revenue and reputation have suffered after food-safety issues in recent years, including E. Coli, salmonella and norovirus cases traced back to local restaurants. The company in 2016 launched a marketing effort outlining steps it was taking to ensure the safety of its food. More recently, it partnered with food-safety platform Zenput to help manage its safety protocols. There have been positive signs in recent results. Chipotle in July reportedan 8% increase in revenue in the quarter and raised its full-year outlook. Chipotle’s position on natural ingredients has been a focus of recent marketing efforts, like its widely lauded “Scarecrow” video from 2013. But Mr. Brandt wants the new campaign to strike a more positive tone. “The Scarecrow,” a chill-inducing video created by CAA, paints a picture of a dark world in which animals are treated badly and food is processed in factories. The video, which follows a scarecrow on a journey to find and use fresh ingredients, highlighted the problems with a food industry that thrives on processed food. It generated a lot of buzz when it was released, but its not the kind of advertising that will resonate with today’s young consumer, said Mr. Brandt. “We should be celebrating more, focusing on what makes us great,” he said. “In the past, we were focused on what others didn’t do. I wanted a more positive tone.” The new ads, created by Venables Bell & Partners, will appear on TV, including national primetime, NFL games and college football, starting today. The campaign will also launch across social media platforms like Instagram and Snapchat, as well as media properties like Vice and Buzzfeed. – Source: The Wall Street Journal.

How this Classic Steakhouse Inspires Lifelong Customers

With competition fierce, every restaurant is looking for ways to inspire loyalty from its customers. Lawry’s the Prime Rib—Chicago decided to start at the beginning. The company created the Junior Carver Program, a loyalty program that focuses on children. Lawry’s, which has 12 locations, eight of which are international, was founded in 1938 in Beverly Hills by Lawrence Frank and his brother-in-law Walter Van de Kamp. Frank, whose family was in the butcher business, moved to California from Milwaukee. The two men went into business making potato chips. During this time, Frank developed a salt for the chips that proved to be a great hit. Frank and Van de Kamp took the proceeds from the salt business and opened Lawry’s. The concept behind the restaurant was Frank’s grandmother’s Sunday dinner. “Sunday dinner was very special to Lawrence, and he thought others would enjoy it as well,” says Shannon Tauschman, sales and marketing manager at Lawry’s Chicago location. Tauschman describes the founders of Lawry’s as “showmen,” and their goal was to make eating out at the restaurant an experience.

From the founding of the restaurant, the experience was meant to include children. Frank strove to create an environment that could expose children to a classic and elevated restaurant experience and help to develop the family experience within out-of-home dining. It was this idea that inspired Tauschman to create the Junior Carvers program. Part of the showmanship/experience at Lawry’s is its unique style of service—much is done tableside. This includes the spinning bowl salad and the carving of the prime rib. The prime rib is brought to the table in a 700-pound solid stainless steel cart. Once the cart is tableside, employees hand carve the prime rib and put it directly onto the customer’s plate. “The carver’s love the children, and the children love the cart,” Tauschman says. Lawry’s already has a successful frequent dining VIP program for adults. It includes a point for every dollar spent (at 250 points, VIP members get a $25 dining reward) and double points on birthdays and anniversaries, which is typical. But Lawry’s flare for showmanship takes the VIP program a step further. All guests who dine at Lawry’s on a special occasion have a maroon congratulations celebratory ribbon draped tableside, a personalized hand-signed card from everyone at Lawry’s, and a complimentary raspberry trifle. VIP members get all this plus personalized Lawry’s seasoned salt and pepper shakers sent to their home. LAWRY’S, THE PRIME RIB. “We want children to have such a good time at Lawry’s so when parents ask them where they want to go for their birthday, the answer will be ‘Lawry’s,'” says Shannon Tauschman, sales and marketing manager at Lawry’s Chicago location. This special program left children out, however. Now, with the Junior Carver’s Program, Lawry’s has a program to draw in children under 12. Rolled out in December as a lunch with Santa, children get a punch card. Since then, when children come in, the restaurant manager goes and asks if the child already has a punch card. If the answer is no, the manager gives the child one along with information explaining the program. The card, which has four pieces of sage advice on the back, is punched with a steer’s head upon each visit to the restaurant. With the fourth visit to Lawry’s, children have earned the status of Junior Carver, receiving their very own Junior Master Carver Medallion and Chef Hat. The children also receive a free dinner and are featured in Lawry’s newsletter and Facebook page (with parent’s permission).  Tauschman describes Lawry’s as a special occasion restaurant, and notes there are many regular guests and loyal customers. “We want children to have such a good time at Lawry’s so when parents ask them where they want to go for their birthday, the answer will be ‘Lawry’s.'” Junior Carvers want to keep coming back to Lawry’s the Prime Rib once they’ve started in the program. The card is already inspiring children to be loyal returning customers. Tauschman has overheard children at the restaurant say to their parents, “Where’s my card?” and seen children encourage their parents to go to Lawry’s. Since instituting the program, multiple children have reached the status of Junior Carver. Their families are loyal customers, and the children are following in the footsteps. One child told Tauschman that she is always going to wear her medallion when she comes to eat at the restaurant and can’t wait for the next visit to Lawry’s. Another child bugged his parents to return to Lawry’s ever since he got his punch card to earn his marks.

Lawry’s prides itself on providing the best quality prime rib. Because of the enormous amount the chain purchases, it has established good relationships with purveyors. It also goes out to the packinghouses and meets with ranchers in order to establish the quality of the product. It’s all this that ensures Lawry’s offers a top-notch product and inspires customer loyalty. With programs like the Junior Carver, the average age of Lawry’s loyal customer may soon reach single digits. – Source: Lawry’s

5 Marketing Musts to Drive Business Success

Beth Comstock, American business executive and current Vice Chair of General Electric, once said: “Marketing’s job is never done. It’s about perpetual motion. We must continue to innovate every day.” Getting a leg-up as a cash-strapped small business owner may seem nearly impossible. Each year brings new social and technological trends to our society, and small companies must pool their limited resources to compete with large corporations, who often have massive marketing teams dedicated to the task of capitalizing on new ways to promote their product. As a company with limited funds, you’ll need to choose which trends to follow even more prudently. Here are five marketing trends to take full advantage of in businesses of all sizes:

Using video as a major part of content strategy Visuals are everything. There’s a reason YouTube sees more traffic than Facebook. By next year, video content is expected to be 80% of all consumer-based internet traffic. Perhaps sensing this, Mark Zuckerberg has said that within five years, Facebook will be mostly video as well. An online ad campaign, at this point, is synonymous with the integration of some sort of video. And with the accessibility of HD cameras and editing software, there’s no excuse for why your brand shouldn’t be making great video content. One great piece of content from last year was “The One Moment,” which doubled as a music video for Ok Go and an advertisement for Morton Salt. The whole video happened in 4.2 seconds — slowed down, it takes up the full length of the song. You can use marketing tricks like this to save time and money without skimping on quality.

Personalizing email marketing campaigns. Only 44% of small business owners have recognized the importance of email marketing. The benefits of email marketing for companies with limited time and money are untold. Unlike many other digital marketing efforts, it is neither costly nor time-consuming. In fact, it’s one of the cheapest campaigns you can launch and requires only a bit of writing ability and a strong list of contacts. You’re able to connect directly with your consumers or clients with a click of a button and collect important marketing metrics, like open and conversion rates.

Leveraging consumer collaboration. One of the most sought-after traits in the millennial generation is authenticity. There’s no better way to create an authentic brand than by leveraging your consumer’s willingness to collaborate with you. With the incredible power of social media, your customers can communicate your brand for you and foster its growth. Reach out to well-known bloggers, contact podcasters that may be interested in your product or service and encourage a conversation about your company. You may not be able to control where the conversation leads, but the buzz generated is often well worth the risk.

Tapping data-driven marketing research and analysis. While many business decisions are powered by intuition, marketing decisions should be motivated by data. In the digital age, every business can tailor their marketing efforts with a great degree of accuracy. Unfortunately, most small businesses aren’t capturing easily-collected information about their consumer. Google Analytics, for example, which gives you advanced metrics about your site, such as bounce rates and the number of unique users visiting your site, is available to you at no cost whatsoever. Other free, marketing analytics tools, such as Keyhole, provide you with the numbers you need to assess your social media marketing campaigns on Twitter and Instagram. These are just a few examples; there is a cornucopia of free resources waiting to be properly utilized by your marketing team. Cultivating personal brands with a friendly, informal tone. Spotify, through a series of billboards, used a vast amount of data it has collected over the past few years to highlight a few of its quirkiest users: the guy who played Justin Bieber’s “Sorry” 42 times on Valentine’s Day, or the person in the theater district who listened to the Hamilton soundtrack 5,376 times in one year. These types of humorous anecdotes are endearing and give personality to your brand. But, making a brand more personal doesn’t necessarily require data mining or expensive billboard campaigns. It’s as simple as creating a brand voice that sounds natural and in-tune with your target audience; a brand that facilely engages with its consumers on a multitude of platforms and produces spot-on hashtags and curates amazing posts.

Conclusion. Marketing, at its heart, is about appealing to people, and attitudes are always changing. Marketing in the 1950s, with its direct appeals to logic and reason, would barely register in the market of today. Marketing in the21st century is geared toward crafting truly compelling stories and brands that embody the human experience. Digital marketing is never easy. Especially when you’ve got a small team and lack a six-figure marketing budget. Worry not: there’s plenty of hope for your small business. producing video content, harnessing the power of email marketing, leveraging consumer participation, embracing data-driven marketing and cultivating a personal brand are surefire ways to jump-start your marketing department. Follow these five trends, continue researching and refining your approach to marketing and never be afraid to alter your strategy to respond to consumer sentiment. Following new trends mindlessly will undoubtedly fail, but being open, assessing them accurately and integrating them into your business sensibly will surely lead to success. – Source: SmartBrief/Charles Dearing.

Papa John’s Asks Potential Acquirers to Submit Offers: Sources

Papa John’s International Inc., the world’s third-largest pizza delivery company, has reached out to potential acquirers to ask them to submit offers, people familiar with the matter said on Wednesday. Papa John’s has come under pressure by founder John Schnatter, who owns about 30 percent of the company. He resigned as chairman in July following reports that he had used a racial slur on a media training conference call. Since then, Schnatter has been seeking ways to regain control. Papa John’s sent out information this week about an auction to sell itself to other companies and private equity firms, and expects to receive first-round bids by the end of October, the sources said.

There is no certainty of a sale, and Papa John’s could also explore an alternative deal, such as receiving an investment, one of the sources added. The sources asked not to be identified because the matter was confidential. Papa John’s declined to comment. Reuters first reported last month that the company had hired Bank of America Corp. and Lazard Ltd. to prepare the ground for a sale. Papa John’s shares ended trading on Wednesday up 8.5 percent at $50.14, giving the company a market value of close to $1.6 billion.

Separately, Schnatter on Wednesday denied a CNBC report that said he had reached out to private equity firms about making an offer for Papa John’s. “Any such report about a potential transaction involving Mr Schnatter is totally and completely false. It is unfortunate that CNBC published this false story without first contacting Mr Schnatter to obtain the true facts,” a spokesman for Schnatter said in an emailed statement. A CNBC spokesman said that the business news TV channel stood by its reporting. Papa John’s has adopted a so-called poison pill defense to discourage a hostile takeover. Schnatter sued the pizza chain’s board and chief executive at the end of August to stop what he described as “the irreparable harm” they are causing the company, according to a court filing.

Last month, Papa John’s posted a second-quarter comparable sales decline of 6.1 percent and cut its sales forecast, citing fallout from the company’s split with Schnatter. Negative publicity surrounding Schnatter depressed July traffic in North America, the company said at the time, noting it was hard to predict how long and how badly that would affect sales. Papa John’s has more than 5,000 locations worldwide, mostly franchised restaurants. Papa John’s Chief Executive Officer Steve Ritchie has vowed to move beyond the fight with Schnatter with a new advertising and marketing campaign, while also removing Schnatter’s image from company promotions. Two franchisee associations working with the company have expressed support for its strategy. Ritchie, previously Papa John’s president, took over as CEO in January. Schnatter came under fire in November for criticizing the National Football League’s leadership over national anthem protests by players. Deal making in the restaurant sector is heating up. Arby’s-owner Inspire Brands Inc. said it would buy Sonic Corp. for about $1.57 billion in cash, adding more than 3,600 drive-in restaurants to its portfolio that includes brands such as Buffalo Wild Wings and Rusty Taco. – Source: Reuters.

Chicago-Based L3 Hospitality Buys Remaining 3 Units

Carlisle Corp. has sold its remaining three fast-casual LYFE Kitchen restaurants to the brand’s Chicago franchisee, L3 Hospitality Group. “We are proud of the local LYFE Kitchen brand we have developed in Chicago and are thankful for the opportunity to make additional enhancements,” said Gail Taggart, co-founder of L3 Hospitality, in a statement Friday. “We will continue to distinguish LYFE Kitchen by bringing a delicious, fulfilling dining experience to our friends and neighborhoods in the city we love most,” Taggart said.

Memphis, Tenn.-based Carlisle Corp., which made a minority investment in LYFE Kitchen in 2014 and later bought the company, said it would focus on its core Wendy’s restaurants. Carlisle has more than 150 Wendy’s units in the Southeast. “Unfortunately, as we aligned our strategic priorities, we did not have the time or resources necessary to fulfill LYFE’s potential and felt a divesture made sense of all parties,” Chance Carlisle, CEO of Carlisle Corp., told the Commercial Appeal newspaper. Carlisle is developing the One Beale project in downtown Memphis and plans a $135 million mixed-use development in early 2019 on the Memphis riverfront. “We have our plate full with the start of One Beale and the continued opportunistic growth of our Wendy’s business as we continue to evaluate expansion options,” Carlisle said. LYFE in 2014 had 15 units in in California, Colorado, Illinois, Nevada and Texas.

With Friday’s announcement, the company said it had closed its Memphis LYFE Kitchen, opened in 2015, as well. “From its inception in 2013, L3 has been inspired by the LYFE name which stands for Love Your Food Everyday,” L3 Hospitality said, adding that the brand had a passion for seasonal dishes in an upscale, fast-casual atmosphere. – Source: NRN.

Salmonella Outbreaks Spark Public Health Concerns in Canada

Public health officials in Canada have recorded hundreds of laboratory confirmed cases of Salmonella infections linked to raw chicken, including frozen raw breaded chicken products despite efforts at educating the public on safe handling practices. There have been 419 laboratory confirmed cases of Salmonella illnesses investigated as part of foodborne illness outbreaks across Canada, according to the Public Health Agency of Canada. Eighty-six individuals were hospitalized. Three people have died, however the agency noted that Salmonella was not the cause of death for two of those individuals, and it was not determined whether Salmonella contributed to the cause of death for the third person. In response to these outbreaks, the Canadian Food Inspection Agency (C.F.I.A.) and other federal food safety agencies are collaborating with the Canadian poultry industry to implement measures aimed at reducing Salmonella at the manufacturing and processing levels of production.

In March, the C.F.I.A. announced new measures that identify Salmonella as a hazard and call for processors to implement modifications that reduce Salmonella to below a detectable amount in products such as chicken nuggets, chicken fingers, chicken strips, popcorn chicken and chicken burgers that are packaged for retail sale. The C.F.I.A. granted the industry a 12-month implementation period to begin immediately. But the persistent problem of illnesses associated with raw chicken products prompted Canada’s Council of Chief Medical Officers of Health to issue a public statement stressing the importance of proper handling of raw poultry products, including frozen raw breaded chicken. “We are very pleased that the government of Canada is working with the food manufacturing industry and food retailers to reduce Salmonella in frozen raw breaded chicken products produced on or after April 1, 2019, to below detectable amounts, thereby reducing the risk of illness for everyone who handles or consumes these types of products,” Canada’s Council of Chief Medical Officers of Health said. “However, until April 1, 2019, and likely for up to a year after this date, frozen raw breaded chicken products containing Salmonella will continue to be in the marketplace and in freezers across the country. “This is why, collectively, we are stressing the importance of handling and preparing frozen raw breaded chicken products with caution.” Frozen raw breaded chicken products should be cooked thoroughly according to the package instructions to an internal temperature of at least 74°C (165°F) using a digital food thermometer to ensure the food is at the proper temperature.

Also, handwashing is important before and after handling raw chicken products, and surfaces, dishes and utensils used to prepare and serve them should be washed and sanitized. “Following this advice when handling, cooking or eating these products will help reduce you and your family’s chance of becoming infected with Salmonella,” Canada’s Council of Chief Medical Officers of Health said. “As Canada’s Chief Medical Officers of Health, we encourage all consumers to be attentive to food safety. We will continue to monitor illnesses and keep you informed of any risks associated with your food.” – Source: Food Business News

6 Tips to Ensure Proper Hygiene When Handling Food

To prevent foodborne illnesses from occurring, maintain a high standard of personal hygiene and cleanliness. Even healthy people carry bacteria. By touching parts of their bodies, such as the nose, mouth, hair, and even clothes, bacteria can spread from the hands to the food. Here are six hygienic best practices for food handlers to follow:

  1. Know how and when to wash hands. This will help prevent the spread of pathogens that can cause a foodborne illness to occur. Food handlers should wash their hands for at least 20 seconds before preparing food or working with clean equipment and utensils, or putting on single-use gloves. Other examples of when to wash hands include after a bathroom break, leaving and returning to the kitchen/prep areas, clearing tables/busing dirty dishes and taking out garbage.
  2. Follow your operation’s glove policy. This may include new mandates requiring a single-use glove to cover bandages on the hands. Food handlers also should be aware of when to change their gloves. That includes if there’s a tear in them, if they become soiled, before starting a new task or if they’re handling trash.
  3. Wear clean uniforms, clothing and aprons. Leave yesterday’s dirty clothes at home so they don’t contaminate food. Aprons should be clean, too. Do not rely on them to cover up dirty spots. A soiled apron could easily contaminate food or the food-prep area.
  4. Don’t wear excess jewelry. Jewelry beyond a plain, band ring shouldn’t be worn if you’re preparing food. It could trap dirt or fall off and get lost in food being prepared.
  5. Do not wear ungloved false or painted fingernails. They could chip or even fall off and end up in a customer’s meal. Nails should be kept short and clean.
  6. Cover and restrain loose hair with a net or appropriate hat. It will keep it away from or touching food, clean equipment and utensils. In addition, it will also prevent the food handler from touching his or her hair while working with food. – Source: The National Restaurant Association/National Food Safety Month.

Eggs Recalled Due to Salmonella Concern

The Centers for Disease Control and Prevention (C.D.C.) and the U.S. Food and Drug Administration are investigating a multistate outbreak of Salmonella enteritis infections linked to Gravel Ridge Farms cage-free large eggs. Cullman, Ala.-based Gravel Ridge issued a recall on Sept. 8 for packages of a dozen and 2.5 dozen eggs in cardboard containers with the UPC code 7-06970-38444-6. The recalled eggs also had “best if used by” dates of July 25, 2018, through Oct. 3, 2018. According to the C.D.C., 14 people were infected with the outbreak strain of Salmonella enteritis in both Tennessee and Alabama. Two people have been hospitalized. The eggs were sold in grocery stores and restaurants in Alabama, Georgia and Tennessee. The C.D.C. said that anyone who bought the eggs should return them to the purchased store or throw them away, regardless of the “best if used by” date. The agency said even if some eggs were eaten and no one got sick, do not eat them. The C.D.C. also wants consumers to wash and sanitize drawers or shelves in refrigerators where recalled eggs were stored. Source: CDC/Food Business News.

Health Officials Determine Cause of Ohio Chipotle Foodborne Illness

Health officials in Ohio released their findings on Aug. 16 regarding the recent foodborne illness outbreak at a Chipotle Mexican Grill restaurant in Powell, Ohio that sickened 647 people. The Delaware General Health District said that stool samples collected in July tested positive for the toxin that Clostridium perfringens forms in the gastrointestinal tract. The food samples did test negative for C. perfringens bacteria. A specific food has not been identified as the source for the illness, Delaware Health said. The Centers for Disease Control and Prevention (C.D.C.) is still carrying out other tests at its lab. In response to the news, Chipotle chief executive officer Brian Niccol released a statement regarding the outbreak. “Chipotle has a zero-tolerance policy for any violations of our stringent food safety standards, and we are committed to doing all we can to ensure it does not happen again,” Mr. Niccol said. “Once we identified this incident, we acted quickly to close the Powell restaurant and implemented our food safety response protocols that include total replacement of all food inventory and complete cleaning and sanitization of the restaurant.” Additionally, Mr. Niccol said, the company will retrain all restaurant employees nationwide starting next week on food safety and wellness protocols. “To ensure consistent food safety execution, we will be adding to our daily food safety routines a recurring employee knowledge assessment of our rigorous food safety standards,” he said. Chipotle is still recovering its image from the foodborne illness outbreak of late 2015 that included several cases of E. coli O26 across 11 states followed by the discovery of norovirus at a Boston-based restaurant that reportedly sickened 80 customers. – Source: Food Business News/Chipotle.

Elite Restaurant Group Buying Spree Continues with Patxi’s Purchase

Elite Restaurant Group, the owner of Slater’s 50/50 and Daphne’s, is adding deep-dish pizza to its fast-growing portfolio. Mike Nakhleh, president of the Los Angeles-based company, said he has purchased the 17-unit Patxi’s Pizza from private-equity firm KarpReilly LLC. Terms of the deal were not disclosed. The acquisition, expected to close in 60 to 90 days, is the second for Elite in less than six months. When the deal is complete, Elite’s portfolio will increase to 50 restaurants with total revenue of about $100 million, Nakhleh said.

More than two years ago, Elite began its buying spree with the purchase of the bacon-centric burger brand, Slater’s 50/50 in Southern California. In April, Elite agreed to purchase Daphne’s California Greek. Since closing the Daphne’s deal in recent weeks, Nakhleh said he’s positioning the 22-unit fast-casual chain for major growth. He stripped “California Greek” from its name, revamped its look and menu and introduced Daphne’s-branded gyro kits at 90 Costco locations on the West Coast. Four new corporate Daphne’s restaurants in Southern California are under construction, including a closed San Diego-area restaurant that is reopening in a new location in Mission Valley, Calif. Nakhleh, a former Sizzler and Fatburger franchisee, said he’s also in talks to buy two other Mediterranean brands. When the proposed mergers close, he said Daphne’s “will double in size over the next six months” as he plans to rebrand those concepts as Daphne’s. He declined to name the other two chains.

Nakhleh said he was attracted to Patxi’s, founded in 2004 in Palo Alto, Calif., because its culture is similar to Daphne’s and Slater’s. “We are excited to add pizza to the portfolio,” Nakhleh told Nation’s Restaurant News in an exclusive phone interview. “Everything I’ve been acquiring is everything I believe in and love.” A majority of Patxi’s full service restaurants are in California. The brand also has locations in Seattle and Colorado. Elite plans to revamp the chain’s menu and design as it plans to open about 10 new units a year.  By comparison, Elite has grown Slater’s 50/50 from six units to 11 since he opened the first franchise restaurant in Dallas in June 2017. The most recent location opened this week in Texas with a second location in Dallas. A 12th location is projected to open by the end of the year in Riverside, Calif. Elite also launched the Slater’s branded food truck this week. The truck is available for private events, and when it’s not booked it will “be out on the streets five days a week in different cities,” Nakhleh said. The full-service burger and craft beer restaurant, founded by Scott Slater in 2009, is known for its signature burgers that are half ground beef and half ground bacon. Bacon also shows up in multiple dishes and beverages from cocktails to macaroni and cheese. Slater grew the company too quickly and, in some instances, chose poor real estate locations with low visibility. Slater sold the company to Nakhleh, who fell in love with concept after eating a burger at the Rancho Cucamonga, Calif. restaurant. Slater no longer owns a stake in the company. He remains the brand’s chief ambassador and holds the title “Baron of Bacon.” Like Daphne’s, the Slater’s brand has expanded into the retail sector. Elite has partnered with a San Diego meat supplier, which is selling Slater’s 50/50 frozen patties at Sam’s Club warehouses across the U.S. Nakhleh said Elite will grow each brand through franchising but with a twist. “For all our brands the plan is to open corporate locations, hold them for 6 months then sell them as turnkey franchise locations,” he said. This business model ensures the restaurants are being built properly and running smoothly before Elite hands over the keys.  As a former franchisee, Nakhleh believes this approach takes away the scary “unknowns and headaches of opening a new location from scratch.” “We want to grow, but want to grow responsibly,” he said. – Source: Restaurant Hospitality.

Arby’s, Buffalo Wild Wings Parent to Buy Sonic for $2.3 Billion

The restaurant industry has to contend with a new giant. The parent of Arby’s, Inspire Brands Inc., announced that it had agreed to acquire Sonic Corp. in a deal valued at about $2.3 billion, adding more than 3,600 locations of the burger chain to a portfolio that also includes Buffalo Wild Wings and Rusty Taco. The deal would give Inspire, controlled by private equity firm Roark Capital, a total of about 8,200 locations and make it one of the 10 largest restaurant companies in the U.S. by that measure. That scale could help Sonic compete in an industry where it’s been squeezed by tough competition from bigger rivals including McDonald’s Corp., Burger King and Yum! Brands Inc., which operates the KFC, Taco Bell and Pizza Hut chains. The larger companies have the advantage of using their scale to get supplies at a better price, said Michael Halen, an analyst at Bloomberg Intelligence. “The value wars are still going strong right now,” said Halen, referring to Inspire’s entry into the battle for burger diners. “McDonald’s and Burger King are really the source of Sonic’s troubles.”

Inspire will continue to operate Sonic as an independent brand, according to a statement Tuesday. The deal, unanimously approved by Sonic’s board, represents a 19 percent per-share premium to Sonic’s closing price on Monday, the company said. Inspire will pay $1.57 billion for Sonic’s equity and assume about $700 million of debt, according to Bloomberg calculations. Sonic shares surged as much as 23 percent on Tuesday to $44.87, above the per-share offer of $43.50. The stock had jumped about 33 percent this year through Monday’s close. The deal would significantly expand Inspire’s U.S. footprint, and with more than 8,000 locations there it would be larger than industry stalwart Wendy’s. Still, the company will need to go on the hunt for acquisitions if it wants to pass some of its other competitors.

As of last year, Yum! Brands had more than 18,000 domestic locations, according to industry researcher Technomic. Burger King is controlled by Restaurant Brands International Inc., which also operates Tim Hortons and Popeyes. Overall, the company has roughly 10,100 U.S. stores. Sonic is the latest struggling chain to be acquired by Inspire, which is credited with mounting a turnaround at sandwich chain Arby’s. Sonic, caught in the competition to offer the lowest prices, has posted declining same-store sales for eight consecutive quarters. The chain relies on cheap drinks, catchy commercials and promotions to lure customers, and it’s struggled to stand out in a crowded restaurant space. ‘Good Price’ Inspire was co-founded by Paul Brown of Arby’s and Neal Aronson, who started Roark Capital Group. Last year, Arby’s — which is majority owned by Roark — agreed to buy restaurant chain Buffalo Wild Wings for about $2.4 billion, adding it to the private equity firm’s stable of eateries. In August, Wendy’s Co. agreed to sell its stake in Inspire, marking another ownership change in a rapidly shifting restaurant industry. Andrew Boord, a portfolio manager at Fenimore Asset Management Inc., said “it looks like a good price” for the Sonic acquisition. Fenimore’s FAM Small Cap Fund held about 235,000 Sonic shares as of June 30. “Sonic has gone through a big turnaround,” Boord said. “Things are looking better.” Source: Bloomberg News.

Keurig Dr Pepper to Acquire Premium Beverage Maker

Keurig Dr Pepper has entered into an agreement to acquire Core Nutrition L.L.C. for $525 million. Core Nutrition is a manufacturer of Core Hydration, a bottled water, and Core Organic, and the business has annual sales of approximately $200 million. Prior to the acquisition agreement, Keurig Dr Pepper and Core Nutrition were working together. Approximately two-thirds of Core Nutrition’s distribution is through the Keurig Dr Pepper supply chain network. “Core has been a valued and successful allied brand partner, and we are pleased that this on-trend beverage will become part of our owned K.D.P. family of brands,” said Bob Gamgort, chief executive officer of Keurig Dr Pepper. “Our sales and distribution capabilities have helped fuel significant growth for the Core portfolio. Through this transaction we intend to realize the full growth potential for the business.” The acquisition of Core Nutrition will be funded with Keurig Dr Pepper common stock, net of the company’s current equity investment and certain other contractual adjustments.  Keurig Dr Pepper expects the transaction to be neutral to its adjusted diluted earnings per share in 2019 and accretive thereafter. “We created Core to meet the increasing desires for innovative, enhanced water offerings with functional benefits for today’s modern consumer,” said Lance Collins, founder of Core. “K.D.P. has been an outstanding partner for Core and I am certain that, under its ownership, Core will continue to see tremendous long-term success. I am a strong supporter of the K.D.P. strategy and business model and am looking forward to being a shareholder in the company.” – Source: Food Business News.

La Boulangerie Acquires Loving Cup

The owners of Garbanzo Mediterranean Fresh and La Boulangerie have added to their portfolio of niche brands with the acquisition Wednesday of Loving Cup, a popular six-unit dessert shop in San Francisco. Terms of the deal were not disclosed. “We bought Loving Cup because it fit nicely into our strategy of curating intimate, local brands that are very aspirational and we believe [have] a lot of ability to expand with a healthy footprint and strong unit-level economics,” partner James Park said. Park is also CEO of 28-unit, Denver-based Garbanzo, of which he owns a majority stake in partnership with real-estate investor Michael Staenberg. The two made what they called a “significant” equity investment in San Francisco-based bakery-cafe concept La Boulangerie in July. They are now co-owners of that concept in partnership with Nicolas Bernadi and Pascal Rigo, who also own Shaw Bakery, which provides baked goods for eight-unit La Boulangerie. “We have an amazing team of food scientists, chefs, executive chefs, bakers, all within our existing portfolio, and we thought there was wonderful opportunity to curate these brands that we believe have a lot of growth potential and leverage the talent across all these brands,” Park said. Starbucks Corp. had acquired then-23 unit La Boulangerie for $100 million in 2012, but then shut them down in 2015, selling five of them back to Bernadi and Rigo, who have since opened three additional locations. A ninth unit is currently under construction in Mill Valley, Calif., Park said. According to a release by the four partners, Rigo and Bernadi made an initial investment in Loving Cup in 2017. “We have always loved the brand, and the unique customizable deliciousness of the non-fat froyos people can create,” Bernadi said in the release. “We are going to push the boundaries of the business model, and we will focus on elevating product quality and customer experience.” The new ownership team said it would focus on three areas at Loving Cup: menu innovation, superior customer experience and expansion. Park said new menu items could include new pastries and warm cookies as well as an expanded line of treats, desserts and beverages. “There’s a lot of buzz about the brand,” Park said. “It has a very cult-like following in San Francisco. We’ve got a lot of interested parties who would love the opportunity to grow with us all over the country.” He said the partners now have a portfolio of Mediterranean items, French pastry and frozen snacks, “and we’re not done.” Noting that there’s currently a “flurry of activity” of large and small restaurant acquisitions, Park said, “We’re no stranger to that activity in this marketplace” and there’s “always a possibility” that they would buy more concepts. – Source: Restaurant Hospitality.

Boston Market Names Chief Operating Officer

Boston Market has named Eric Wyatt its chief operating officer, the Golden, Colo.-based company said. Most recently he was vice president of operations for a large Panera Bread franchisee where he oversaw day-to-day operations including retail, marketing, recruiting, human resources, catering facilities and bakery. He also has held senior operations roles at Starbucks, Taco Bell, Bath & Body Works and Mobil Oil. “Eric is a results-driven restaurant industry executive and brings a proven track record of operational leadership and experience to Boston Market,” CEO Frances Allen said in a press release. “He will be a key leader in developing and executing our strategic plan going forward and will be focused on flawless operational execution to deliver a highly satisfied guest experience.” Allen herself is fairly new at the rotisserie chain, which has more than 450 locations. She joined the company in May. According to Nation’s Restaurant News Top 200 data, Boston Market, which is owned by Sun Capital Partners Inc., had sales of $565.3 million for the year ended Dec. 2017.

KFC Names Yum Brands Veteran Tony Lowings CEO

Roger Eaton, CEO of the KFC Division of Yum Brands Inc., will retire at the end of the year and will be replaced Jan. 1 by president and COO Tony Lowings, the company said Friday. Lowings, left, a 24-year veteran of Yum Brands, has vast experience running international growth for the Louisville-based company, which is also parent to Taco Bell and Pizza Hut. Eaton has led the KFC brand since 2014. In his new role, Lowings, 60, will report to Yum Brands CEO Greg Creed. All top-level KFC leaders from around the world will report to Lowings effective Jan. 1, including Kevin Hochman, president and chief concept officer of the U.S. division of KFC.  Hochman replaced Jason Marker last year. As CEO, Lowings “will assume global responsibility for driving the brand strategy and performance,” the company said in a statement. Creed called Lowings an outstanding leader with a strong leadership track record. “As a proven and highly respected strategic brand builder, high-impact operations leader and people grower, Tony is the perfect person to continue elevating KFC into a distinctive, relevant and easy global brand that people trust and champion,” Creed said in a statement. Before becoming COO of KFC earlier this year, Lowings had held various leadership positions in Yum’s international business units. He was managing director of Asia-Pacific, a high-growth region for KFC.  He also held the role of COO of Yum Restaurants International. “I’m thrilled and incredibly privileged to continue working with our committed KFC leaders and amazing franchise partners to further strengthen and accelerate the development of our powerhouse global brand,” Lowings said in a statement. “KFC is an iconic, well-loved brand with millions of fans and I couldn’t be more excited about its future.” During his years at KFC and Yum, Eaton held a number of leadership positions including COO of Yum Brands, CEO of KFC U.S., and chief operating and development officer of Yum Brands. “Roger’s imprint on our culture, people and the KFC brand is vast and his legacy is lasting,” Creed said in a statement. “While we will miss Roger, he’s earned this next phase of life and we wish him well as he spends time with his wife Debbie and children Pierce and Georgie.” KFC generates global sales of more than $24 billion at its more than 21,000 restaurants around the world. – Source: NRN.

Josh Zadikoff Named President of Cornerstone Restaurant Group

David Zadikoff, founder and CEO of Cornerstone Restaurant Group, announced Wednesday that Josh Zadikoff will take on the role of president at the hospitality company, which oversees Chef Bill Kim’s bellyQ and urbanbelly restaurants in Chicago as well as iconic Michael Jordan-brand restaurants throughout the country, among others. The announcement comes as Josh Zadikoff leads an exciting development for Cornerstone: a partnership with global home furnishings retailer Crate and Barrel to open a full-service restaurant in Oakbrook Center that will serve as a showcase both for Kim’s award-winning cuisine and the Crate and Barrel brand. “This is a natural transition for us and the right time, given Josh’s experience, his thirst for driving the business and his desire to build on our family-focused legacy,” says David, 67, who remains deeply involved at Cornerstone as CEO. “This is what I love to do. My dad has set an amazing foundation for Cornerstone and instilled our culture of heartfelt hospitality. I’m thrilled to guide us into this next generation,” Josh says. As part of the transition, Josh and David have assembled a core leadership team. Danny McGowan, currently Vice President, has been named COO. Vice President of Finance Matt Goldstick becomes CFO.

In addition to Cornerstone’s convergence into the retail space, the team is collaborating on other exciting projects to be announced soon that include international expansion of the Cornerstone brand and the growth of its dynamic urbanbelly brand. Josh, 33, got his first taste of hospitality as a youngster, traveling extensively with his family, visiting his dad’s restaurants and even living in hotels (David was a longtime hotel executive before starting Cornerstone). He worked various restaurant jobs during high school and in college; he completed a management training program at Wildfire, a Lettuce Entertain You Enterprises restaurant. Upon graduating from the University of Illinois at Urbana-Champaign, Josh joined Cornerstone and helped open and manage SolToro Restaurant in Connecticut. After four years at Hyatt Hotels, he returned to Cornerstone to open and manage Michael Jordan’s Steak House Chicago for three years before moving into the role of Brand Operations Manager for Cornerstone. In this leadership role, Josh oversaw the ENO Wine Bar concepts and the Michael Jordan portfolio of restaurants, led the brand refresh and renovation of SolToro and created the concept for Michael Jordan’s Restaurant in Oak Brook, which opened in August 2017. Of McGowan, a 30-year veteran of Lettuce Entertain You Enterprises, David Zadikoff says, “His knowledge of operations is a tremendous asset. He’s a mentor and leader who’s seen and done it all.” Goldstick, who previously worked with Cornerstone as Finance Manager, returned in January 2018 after a very successful period with Ernst & Young leading a mergers and acquisitions team. “Matt is remarkably bright and has a breadth of financial experience that will enable our growth. With this leadership team of Josh, Danny and Matt, I couldn’t be more excited about Cornerstone’s future,” David says.

A native of South Africa, David Zadikoff immigrated to the United States in 1976 and found work in the storeroom at the Los Angeles Hilton hotel. That led to a hotel career spanning five cities, until he and Jonathan Albert founded Cornerstone in 1992. My dad has defined what it means to be the absolute role model of a business leader by infusing his passion for hospitality with his purpose of making a difference in people’s lives. This is our cornerstone, one that as a team we’ll continue to uphold,” Josh says. Cornerstone Restaurant Group and affiliate Jump Higher, L.L.C., led by restaurateurs David Zadikoff and Josh Zadikoff, in partnership with Michael Jordan, oversee all Michael Jordan-brand restaurants, including Michael Jordan’s Steak House (Chicago, Connecticut, New York, Portland), Michael Jordan’s Restaurant in Oak Brook, Michael Jordan’s 23.sportcafe (Connecticut), and SolToro Restaurant (Connecticut). Additionally, Cornerstone’s growing Asian ventures with Chef Bill Kim include the Michelin Bib award-winning bellyQ and both locations of urbanbelly, in Chicago’s West Loop and Wicker Park neighborhoods. In 2019, Cornerstone will partner with retailer Crate & Barrel to open a full-service restaurant in its Oakbrook Center location, with Kim leading the menu development. Cornerstone also manages operations for ENO Wine Room (Chicago, San Francisco). – Source: Fsrmagazine.com.

Leave a Reply